CBOT soybean futures closed higher on Thursday despite a strong Brazilian harvest. May soybeans rose by 4-3/4 cents to $10.13 per bushel, while soymeal dropped and soyoil increased slightly. The dollar’s strength influenced commodity prices as traders geared up for USDA reports on grain stocks and planting intentions due at the end of March.
On Thursday, soybean futures at the Chicago Board of Trade (CBOT) experienced fluctuations largely due to harvest pressures stemming from a substantial Brazilian crop. However, they ultimately closed higher as traders made adjustments ahead of an upcoming data release by the U.S. Department of Agriculture (USDA) later this month. The May soybeans (SK25) settled at an increase of 4-3/4 cents, reaching $10.13 per bushel.
In other market activities, May soymeal (SMK25) decreased by 60 cents to $297.10 per short ton, while May soyoil (BOK25) experienced a modest rise of 0.35 cent, closing at 42.71 cents per pound. The dollar index (DXY) saw an upward trend following statements from the U.S. Federal Reserve indicating caution regarding further rate cuts this year, influenced by uncertainties surrounding U.S. tariffs, which in turn strengthens the dollar and raises the price of U.S. commodities globally.
Traders are actively preparing for the USDA’s grain stocks and prospective planting reports scheduled for March 31. These reports will divulge important estimates regarding farmers’ planting intentions for 2025. Amid shifting supply dynamics towards Brazil, China’s imports of U.S. soybeans surged by 84.1% during the first two months of 2025 compared to the previous year, driven by tariff-related concerns that prompted a spike in shipments.
Lastly, the USDA noted that net U.S. soybean sales last week totaled 352,600 metric tons for the 2024/25 marketing year, which fell short of the trade estimates ranging from 400,000 to 900,000 tons.
In summary, despite pressures from an abundant Brazilian soybean harvest, CBOT soybean futures closed positively on Thursday. Variations in related commodities were noted, impacted by broader market factors, including currency strength. As traders prepare for significant USDA reports, notable shifts in U.S. soybean sales and Chinese import activities underscore the evolving dynamics within the soybean market.
Original Source: www.tradingview.com
